Gold Technical Analysis
The gold market continues to be very strong, as you can see with the market now testing yet another all-time high. There are a lot of geopolitical issues out there that I think traders will be watching, and with that being the case, I think you have to look at short-term pullbacks as potential buying opportunities.
In this environment, I do believe that any short-term pullback that opens up value, you have to take advantage of. Gold is getting a boost due to geopolitical concerns as well as the US dollar shrinking a bit. Nonetheless, it really doesn’t matter. This is a market that’s been on fire for a while and now continues to see plenty of value hunting.
Geopolitical Support and Technical Levels
The $4,400 level is an area that I think will continue to be support, and at this juncture, I do think that if we did get back there, the enormous amount of buying would be kind of impressive, even in this environment of runaway momentum.
The 50-day EMA is all the way down at the $4,300 level, and based on the ascending triangle, we could be looking at $4,900. There is nothing on this chart that suggests we can’t get there, so with that being the case, I remain bullish.
I think any time you get a little bit of a pullback, you have to look at it as a potential opportunity in a market that is just chugging right along. There is no opportunity to short this market anytime soon. Gold continues to see plenty of momentum, and this is something that I will not fight anytime soon.
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